Research Shows Yields Vary Widely Among Federally-Insured 529 Plan Options

Share Article published an update of FDIC-insured products in the 529 marketplace for 2018. The report, first published in 2017, compares the yields of federally-insured investment options offered by 529 college savings plans.

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Federally-insured investments are a smart choice for conservative investors saving for college, a leading independent college savings resource and authority on 529 plans, published an updated study on federally-insured products available through 529 plans. The 2018 study reviewed 25 plans offering a product insured by the Federal Insurance Deposit Insurance Corporation (FDIC), and one plan offering a product insured by the National Credit Union Share Insurance Fund (NCUSIF).

The study found that yield on FDIC-insurance products varied widely, and increased from 2017, ranging from 0.03% to 2.05% for savings accounts to 0.25% to 2.15% for CDs, depending on the duration. Total annual asset-based fees for plans offering an FDIC-insured product remained the same and ranged from 0.00% to 0.67%.

At the time of the study, College Savings Bank, a Division of NexBank SSB, offered the highest APY net of fees on 1-, 2-, and 3-year maturity CD products available through the Arizona Family College Savings Program – Bank Plan (AFCSP – Bank Plan) and the College Choice CD 529 Savings Plan.

Among savings accounts, highest yields were offered by portfolios available through Utah’s my529, South Carolina’s Future Scholar 529 College Savings Plan (advisor- and direct-sold), the AFCSP – Bank Plan, Indiana’s College Choice CD 529 Savings Plan and North Carolina’s National College Savings Program.

“Federally-insured investments are a smart choice for conservative investors saving for college,” said Martha Kortiak-Mert,’s chief growth officer. “In 2018, families have more options for CDs and savings accounts with higher yields, which is a positive trend.”

FDIC-insured and NCUA-insured investments are backed by the full faith and credit of the U.S. government up to certain limits in the event of a bank failure. Currently, there are 25 college savings plans that offer an FDIC-insured investment option, which include savings accounts and bank certificates of deposits (CDs), and one plan offering a NCUA-insured savings account option. These products allow families to take advantage of the tax benefits and flexibility offered by 529 plans, without risking their principal investment.

This study was sponsored by CollegeSavings Bank, a division of Nexbank SSB. To download the complete report, visit

About has been the leading independent authority on 529 college savings plans since 1999. The site compiles and analyzes data, and creates content and tools to provide parents, financial professionals and state policymakers with resources to help them understand how to meet the challenge of ever-increasing higher education costs.

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Kathryn Flynn
Saving For College LLC
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